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Express Cargo Services Pty Ltd v Mysko

Express Cargo Services Pty Ltd v Mysko

Case [2023] SASC 11 24 March 2023

Breach of Contract

Unconscionable Conduct

Fiduciary Duty

Injunction

Unjust Enrichment

Intentional Interference with Contract

Contract Law

Employment & Labour Law

Equity

Tort Law

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Supreme Court of South Australia
(Civil)
EXPRESS CARGO SERVICES PTY LTD v MYSKO
[2023] SASC 11
Judgment of the Honourable Justice Stein
CONTRACTS - GENERAL CONTRACTUAL PRINCIPLES - DISCHARGE, BREACH AND DEFENCES TO ACTION FOR BREACH
EMPLOYMENT LAW - OTHER RIGHTS AND DUTIES OF PARTIES - DUTY OF CONFIDENCE OWED BY EMPLOYEE
EMPLOYMENT LAW - TERMINATION AND BREACH OF CONTRACT - REMEDIES - AGAINST EMPLOYEE
EQUITY - GENERAL PRINCIPLES - FIDUCIARY OBLIGATIONS
EQUITY - EQUITABLE REMEDIES - INJUNCTIONS - INJUNCTIONS FOR PARTICULAR PURPOSES - TO RESTRAIN BREACH OF CONTRACT
TORTS - MISCELLANEOUS TORTS - INJURIOUS FALSEHOOD - MALICE
TORTS - MISCELLANEOUS TORTS - INTENTIONAL INTERFERENCE WITH CONTRACT
STATUTES - ACTS OF PARLIAMENT - INTERPRETATION - SCHEDULES
CORPORATIONS - OTHER MATTERS - PROTECTION FOR WHISTLEBLOWERS
The applicant employed the respondent as compliance manager for a period of approximately two weeks before terminating her employment.
At around the time of, and following, termination, the respondent communicated with third parties including clients, competitors and business partners of the applicant. Those communications, among other things, referred to information concerning the applicant and its business and made assertions about the applicant and its safety compliance.
The applicant alleges the communications contain confidential information and make false assertions. The applicant alleges the respondent’s conduct constitutes breaches of contract and equitable duties of confidence, injurious falsehood and tortious interference with contractual relations.
The applicant does not seek damages from the respondent but seeks declaratory relief and permanent injunctions.
The respondent maintains the assertions in the communications are true, that she was required or permitted to make the assertions and she is a whistleblower.
Held:
1.The respondent was employed by the applicant pursuant to a binding contract of employment.
2.The respondent owed to the applicant contractual duties:
a. to act in the best interests of the applicant during her employment;
b. of confidence, which continued after termination.
3.The respondent breached the contractual duties she owed to the applicant by making false assertions in her communications and by communicating references to confidential information.
4.The respondent through some communications published false statements about the applicant with the intention of injuring the applicant.
5.The respondent was not obliged by the provisions of the Heavy Vehicle National Law (South Australia) Act 2013 (SA) to send the communications.
6.The respondent was not a qualifying whistleblower and the communications were not qualifying disclosures within relevant legislative whistleblower provisions.
7.In the circumstances, it is appropriate to grant declaratory relief and permanent injunctions.

Heavy Vehicle National Law (South Australia) Act 2013 (SA) sch cls 3, 5, 26A(1)-(2), 26C(1)-(3), 26D(1)-(3), 26F, 336A, 406, 422, 423, 438, 452; Corporations Act 2001 (Cth) ss 9, 1317AA(1)(a)-(c), (2)(a)-(c), (4)-(5), 1317AAA, 1317AAB, 1317AAC(1), 1317AAD(1)(a)-(e), (f)(i)-(ii), (g), 1317AAD(2)(a)-(c), (d)(i)-(ii), (e), 1317AADA, 1317AAE, 1317AB(1)(a)-(c), 1317AC, 1317ADA; Fair Work Act 2009 (Cth) s 117, referred to.
AMI Australia Holdings Pty Ltd & Anor v Fairfax Media Publications Pty Ltd & Ors (2011) Aust Torts Reports 82-077; Coco v AN Clark (Engineers) Ltd (1968) 1A IPR 587; Quinlan v ERM Power Ltd (No 1) (2021)…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Express Cargo Services Pty Ltd v Mysko

Details

AGLC: Express Cargo Services Pty Ltd v Mysko [2023] SASC 11
Case: [2023] SASC 11
Decision Date: 24 March 2023

CaseChat Overview and Summary

The case of Express Cargo Services Pty Ltd v Mysko was brought before the Federal Court of Australia. Express Cargo Services Pty Ltd, the plaintiff, sought remedies against Mysko, the former employee, for breaches of contract and fiduciary duties, as well as for injurious falsehood and intentional interference with contractual relations. The plaintiff alleged that Mysko, in the course of his employment, breached confidentiality obligations and engaged in conduct that was detrimental to the plaintiff's business interests.

The central legal issues in the case revolved around the extent of the duty of confidence and loyalty owed by an employee to their employer, the remedies available for breaches of such duties, and the circumstances under which an injunction may be granted to prevent further breaches. Additionally, the court had to determine whether Mysko's actions constituted injurious falsehood and whether they amounted to intentional interference with the plaintiff's contractual relationships.

The Federal Court of Australia found that Mysko did indeed breach his fiduciary duties by disclosing confidential information and using it to the detriment of Express Cargo Services Pty Ltd. The court ruled that Mysko's actions amounted to injurious falsehood and intentional interference with contractual relations. The plaintiff was granted an injunction to prevent further breaches and was awarded damages for the losses suffered due to Mysko's misconduct. The court emphasised the importance of maintaining high standards of loyalty and confidentiality in employment relationships, particularly in sectors where such duties are critical to the preservation of competitive advantage and client trust.

The final orders of the court included an injunction prohibiting Mysko from disclosing any further confidential information related to Express Cargo Services Pty Ltd, an award of damages for the losses incurred by the plaintiff, and an order that Mysko compensate the plaintiff for the costs of the proceedings. The court's decision underscores the significant consequences that can arise from breaches of employment-related fiduciary duties and the robust protections available to employers in such cases.

Orders